The Pension Committee of Croydon Council met on Tuesday 9 June 2026 to discuss updates on the London LGPS CIV Ltd (London CIV ) and the Fund's pooling position, as well as reviewing key performance indicators for the Pensions Administration Team. The committee also received reports on the audit plan, governance compliance, breaches of the law, risk register, and the fund's investment and funding progress.

London CIV Update

The committee was scheduled to receive an update on the evolving relationship between the Croydon Pension Fund and London LGPS CIV Ltd (London CIV ). This included details on the contractual and governance arrangements to be put in place by 30 June 2026, following the Fit for the Future reforms and the Pension Schemes Act 2026. The report also covered the Fund's pooling position as of 31 March 2026, including any cost savings achieved. Representatives from London CIV were expected to present a broader context on pooling, governance, performance, and responsible investment. The report highlighted that legislation enacted on 29 April 2026, with further regulations due on 30 June 2026, mandates that all Local Government Pension Scheme assets are managed through FCA-regulated asset pool companies, significantly altering the operating model for LGPS funds. The recommendation was for the committee to note the contents of this report.

Croydon Pensions Administration Team Key Performance Indicators and Pensions Dashboard Reporting

This report was scheduled to outline the Key Performance Indicators (KPIs) for the Croydon Pensions Administration Team for the period February 2026 to April 2026. These KPIs are measured against the legal requirements for administering the Local Government Pension Scheme. The report was also intended to provide information regarding the Pensions Dashboard. Officers noted that targets for most indicators had been met, with the exception of deferred benefit calculations, which remained below expected levels. A plan was in place to address older deferred benefit cases, which were noted as being more complex and time-consuming. Updates were also provided on the cloud migration project, new LGPS regulations coming into force on 1 April 2026, and the government's timeline for councillors and mayors to enter the LGPS. The report indicated that overall, regulatory changes would increase manual work and place a burden on the administration team. The committee was asked to note the KPIs and performance against them.

The Audit Plan for the London Borough of Croydon Pension Fund

The committee was presented with the Audit Plan for the London Borough of Croydon Pension Fund for the year ending 31 March 2026, as provided by Grant Thornton UK LLP. This plan outlines the planned scope and timing of the statutory audit for those charged with governance. The report highlighted that the Accounts and Audit (Amendment) Regulations 2024 require the Fund to publish audited financial statements by 31 January 2027. Grant Thornton has been appointed by Public Sector Audit Appointments Limited (PSAA) as the auditor for the London Borough of Croydon, including the audit of the Fund's financial statements. The committee was recommended to note the contents of the Audit Plan.

Governance Best Practice Compliance Statement

This report was intended to update the Governance Best Practice Compliance Statement for the committee's consideration. Regulation 55 of the Local Government Pension Scheme Regulations 2013 requires administering authorities to prepare a statement detailing their compliance with guidance from the Secretary of State regarding the delegation of functions. The report noted that three substantive changes had been made to the previous statement, reflecting updated appointments and the current position. The committee was asked to review and agree the draft statement.

Review of Breaches of the Law

The committee was scheduled to review the current Breaches of the Law log extract for the Pension Fund, highlighting any changes since the last review on 17 March 2026. The report detailed the requirements under Section 70 of the Pensions Act 2004 for reporting breaches of the law to The Pensions Regulator. A breach of the law was defined as a failure to comply with a relevant duty imposed by legislation or rule of law, where such failure is likely to be of material significance to the Regulator. The extract presented 14 items, with no new entries, three removals due to age, and no updates since the previous review. The committee was recommended to review and note the contents of the log extract.

Review of Risk Register

This report presented the current Risk Register for the Pension Fund, highlighting any changes since the last review on 17 March 2026. The register detailed relevant risk scenarios, their likelihood and impact, and proposed mitigations. It indicated that there were 20 risks on the main register, with 13 considered significant (scoring 10 or higher). The report noted that planned future controls could reduce the number of significant risks to 8. No new risks had been added to the register. The committee was recommended to review and note the contents of the Pension Fund Risk Register.

Progress Report for the Quarter Ended 31 March 2026

This report provided an update on the Fund's investments and current funding position for the quarter ending 31 March 2026. It covered performance against strategic goals, the asset allocation strategy and planned investments, risk management, and updates from investment manager meetings. The market value of the Fund's investments at 31 March 2026 was £2,139.4m, a decrease of £27.4m over the quarter, with a fund return of -1.15%. Since the last triennial valuation on 31 March 2025, the Fund had delivered a return of approximately 10.0%, exceeding the assumed discount rate of 5.9% p.a. The indicative funding level was 124%, with a surplus of £0.43bn. The report detailed the current strategic asset allocation and movements within different asset classes, noting that the equity allocation was above the target range and would be rebalanced. The committee was recommended to note the contents of the report.

Local Government Pension Scheme Advisory Board / The Pensions Regulator Update

This report advised the committee of matters currently being considered by the Local Government Pension Scheme Advisory Board (SAB) and The Pensions Regulator (TPR) that are relevant to the Fund. It included updates on the government's response to the Fit for the Future reforms, the publication of the 2025 Scheme Annual Report, and discussions regarding fiduciary duty and investment in conflict zones. Updates were also provided on the LGPS Code of Transparency, the Pension Schemes Act 2026, and the Access and Fairness consultation. The report noted that TPR had not published anything specifically relevant to the LGPS in the last twelve months, but its enforcement strategy consultation could affect the scheme. The committee was recommended to agree to note the contents of this report.

Exclusion of the Press and Public

A motion was to be moved and seconded to exclude the press and public from the remainder of the meeting for specific items of business, on the grounds that they involved the likely disclosure of exempt information.

Part B - Progress Report for Quarter Ended 31 March 2026

This section of the agenda indicated that the progress report would be discussed with the press and public excluded, due to the likely disclosure of exempt information.